Chinese Consumer Prices Fall 0.8%

Updated July 18, 2002 1:32 a.m. ET

China's consumer price index fell 0.8% on the year in June, the smallest monthly decline since March this year, official figures published Thursday show. Prices in major cities fell further than the national average, with China's urban CPI down 0.9% on the year in June. Rural prices continue to fall by a smaller margin than the national average. Rural CPI fell 0.5% in June, a slightly faster decline than the drop of 0.4% in May. While prices fell, China's retail sales rose 8.7% on the year in June. China has been gripped by deflation since 1998, emerging only briefly in 2000 and early 2001 before prices again began...